SANTA ANA, Calif., Nov. 9, 2000 (PRIMEZONE) -- The following is being issued by Donner Corp. International, a Santa Ana, California-based investment banking and institutional research firm and a member of the National Association of Securities Dealers, CRD number 37702.
Donner Corp. International has upgraded its recommendation on Cortex Pharmaceuticals, Inc. (OTCBB:CORX) from a Speculative Buy to a Buy. Cortex Pharmaceuticals, Inc. is an Irvine, California-based biotechnology company that develops medicines addressing the cognitive and memory aspects of central nervous system disorders. Cortex's product candidates originate from its proprietary AMPAKINE(r) technology, which has generated hundreds of molecules that affect cells in various parts of the brain.
Donner believes that the deal with Les Laboratoires Servier of France served as yet one more piece of evidence validating Cortex's AMPAKINE(r) technology, which was 7 years in the making. The Servier deal, which will bring in $11.075 million into Cortex over a three-year period, capped a remarkable two-year run where Cortex inked partnership deals that will bring in just under $22 million in up-front payments, milestone payments, and research support.
Donner believes that the upfront payment and research support from the Servier deal should give Cortex at least 2 to 3 more years of operating viability, more than enough time to see the results from the schizophrenia phase I trial by Akzo Nobel's NV Organon (Nasdaq:AKZOY), the results from the attention deficit hyperactivity disorder phase II proof of principle trial by Shire Pharmaceuticals Group, PLC (Nasdaq:SHPGY), and the initiation of a cross national study on mild cognitive impairment with Servier.
Donner concludes that Cortex is greatly undervalued when compared to a similar company, Axonyx, Inc. (Nasdaq:AXYX), which is trading at three times Cortex's market capitalization as of November 7, 2000 and has a single recent partnership deal that is smaller than any of Cortex's partnership deals.
A research report was issued prior to this press release. For copies of the report, please visit the Donner Corp. International website at www.donnercorp.com.
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